Johannesburg - The rand weakened against the dollar on Monday, tracking a weaker euro after the Swiss National Bank's move last week to scrap the cap on the value of its currency fuelled talk of imminent quantitative easing in Europe.
The euro, the currency of South Africa's biggest trading partner, hit an 11-year low on Friday on the weaker franc.
This increased the likelihood of the European Central Bank launching its money-printing programme this week to revive the region's economy, raising appetite for riskier emerging-market assets.
By 0637 GMT, the rand had slipped 0.18 percent to R11.5680 against the greenback and by hearly afternoon had fallen to R11.63.
“The local unit is being driven by foreign factors at present, buckling beneath pressure from stronger greenback and in wake of Swiss National Bank's decision to abandon its currency cap to euro,” NKC Independent Economists said in a note.
The yield on government bonds maturing in 2026 was flat at 7.405 percent, after hitting a 22-month low in the last session.
Reuters